JSE-listed Texton Property Fund today announced that it is embarking on a planned leadership transition to tailor its executive composition to its new streamlined business structures and shifting operational needs.
The transition in leadership will see Texton’s caretaker CEO, Marius Muller, who has steered the company for the past 15 months, vacating the position at the end of June 2020. As from 1 July 2020 he will revert to his former position as a non-executive director of Texton and also resume his role as a member of the company’s Capital and Investment Committee.
Texton Chairman, Marcel Golding, says, “Marius stepped in to lead the business at an extremely challenging time for the company. Texton has been meaningfully repositioned and its strength as a sustainable long-term business is significantly improved. It has clear strategic direction and a strengthened foundation from which to move forward. We thank Marius for his ongoing leadership and commitment and look forward to his continued contribution on the Texton Board of Directors. The board has full confidence that this transition represents a seamless handover and strong continuity.”
Texton is a diversified REIT with total property assets valued at R4.2bn, of which 60.9% by value is in South Africa and 39.1% in the United Kingdom.
Under Muller’s leadership, key issues have been resolved. It has put a clear strategy in place focusing on tenant retention, filling vacancies and lowering funding risk. Good progress is already being made against its strategic priorities. Texton recently reported its interim results for the six months to 31 December 2019, showing improved operational metrics from its South African portfolio. In the UK, it declared solid figures from its wholly-owned UK portfolio. Its biggest asset, Broad Street Mall, is moving forward with value-adding residential and hotel expansion projects, among others, which will transform it into a mixed-use precinct and unlock value. Texton’s loan-to-value ratio had improved notably to below 45%, with strategies in place to bring it down further
Golding confirms that the process of finding a replacement CEO has already commenced and an update in this regard will be issued in due course. “Given the environment in which we are operating, our new executive structures have been tailored to elevate efficiencies while delivering the company’s strategic priorities and operational key performance areas. In this regard, we will be announcing the appointment of a senior property specialist as the Financial Director of Texton next week. We strongly believe these changes are good for Texton and its stakeholders,” says Golding.